Vedanta’s delisting plan fails
Vedanta share price was locked in 10% lower circuit in the early trade on October 12 after the metal giant’s delisting offer failed due to poor response.
Vedanta shares were down 9.99% at Rs 109.90 on the BSE, while benchmark Sensex was up at 40,879 points.
Vedanta Resources and its indirect subsidiaries, Vedanta Holdings Mauritius and Vedanta Holdings Mauritius II, had informed that the delisting offer is deemed to have failed.
The total number of offer shares validly tendered by the public shareholders in the delisting offer is 125.47 crore shares, which is less than the minimum number of offer shares required to be accepted by the acquirers for the delisting offer to be successful. Thus, the delisting offer is deemed to have failed.
Vedanta needed 134 crore shares tendered by public shareholders for delisting to go through.
The reverse book building process for public shareholders to tender their shares was open between October 5 -9, and the floor price for share tendering was set at Rs 87.25.
As per regulations, for successful delisting of shares, promoter shareholding must cross the 90% shareholding threshold.
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